New Delhi: ADB on Monday said it will provide USD 68 million (over Rs 500 crore) loan to IIFL Home Finance for lending to lower-income women borrowers for affordable green housing.

The loan comprises a direct ADB loan of up to USD 58 million and a USD 10 million concessional loan by the Canadian Climate Fund for the Private Sector in Asia (CFPS).

"The Asian Development Bank and IIFL Home Finance Limited signed a USD 68 million loan to improve financial access to affordable green housing for lower-income women borrowers in India," ADB said in a release.

From ADB's loan, 80 percent will be earmarked for lending to women borrowers or co-borrowers and 20 percent allocated to financing mortgages for green-certified homes, ADB said.

The CFPS loan will support IIFL's green housing portfolio, specifically towards incentivizing developers to adopt green certification standards in building affordable housing. "By leveraging IIFL's focus on financial inclusion and CPFS' leadership on climate-resilient housing, ADB can help low-income communities to manage the impacts of climate change," Suzanne Gaboury, ADB Director General for Private Sector) Operations said.

ADB said women often find it difficult to obtain mortgage loans in India. Citing a 2017 study; ADB said only 5 percent of women have borrowed from a formal financial institution and only 3 percent have an outstanding housing loan.

Lack of property ownership contributes to the low social status of women, their vulnerability to poverty, and low bargaining power within households, ADB said further.

"Funding from ADB will help us to improve the penetration of green affordable housing in deeper markets of India and fulfill the dreams of many Indian families to own their own homes. Monu Ratra, CEO and Executive Director, IIFL HFL said.

Source- PTI